A bill to facilitate the ability of product sellers to establish product liability risk retention groups, to facilitate the ability of such sellers to purchase product liability insurance on a group basis, and for other purposes.
Product Liability Risk Retention Act of 1981 - Defines "risk retention group" to mean any corporation or insurance company formed under State law which: (1) is organized for the primary purpose of assuming and spreading product liability or completed operations liability risk exposure; (2) is chartered as an insurance company under State law; (3) does not exclude members for competitive advantage; and (4) consists of members whose principal activity is the manufacture, design, distribution, packaging, or sale of a product.
Defines "purchasing group" to mean any group of persons which has as one of its purposes the purchase of product liability or completed operations insurance on a group basis.
Exempts risk retention groups and purchasing groups from State laws which prohibit, regulate, or otherwise discriminate against such groups.
Enumerates requirements which a State may impose on a risk retention group, including compliance with unfair claims settlement practices laws, payment of taxes, and reporting requirements.
Authorizes a State to license an agent or broker for a purchasing group.
Stipulates that the ownership interests of members in a risk retention group shall not be considered securities or an investment company for purposes of the Federal securities laws or State blue sky laws.
Became Public Law No: 97-45.
Introduced in Senate
Read second time and referred to Senate Committee on Commerce.
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